Question: Part 1: Capital Needs Analysis - 100 points 1. $150,000.00 /year needed during retirement Retirement will last 35 years 17 years until retirement 12.0% return

Part 1: Capital Needs Analysis - 100 points 1. $150,000.00 /year needed during retirement Retirement will last 35 years 17 years until retirement 12.0% return before and after retirement 3.0% inflation rate - Use the present value of an annuity (annuity due) to calculate the lump sum needed at retirement assuming the principal will be liquidated. - Inflate to the amount needed in dollars on the retirement date. - Use the future value of an annuity (ordinary annuity and annuity due) to calculate the required annual savings. How much must be saved if the principal is not liquidated? - Calculate the present value of the lump sum needed at retirement for the length of the retirement period and add it to the lump sum needed at retirement. - Use the new future value to calculate the annual savings (ordinary annuity and annuity due). What if the principal is not liquidated and it is to keep its purchasing power? - Calculate the present value of the lump sum needed at retirement for the length of the retirement period and add it to the lump sum needed at retirement (using the inflationadjusted rate of return). - Use the new future value to calculate the annual savings (ordinary annuity and annuity due)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Capital Needs Analysis Home work $75,000 /year needed during retirement Retirement will last 25 years 30 years until retirement 6.0% return before and during retirement 3.25% inflation rate Use the...

please include the formulas you use on the excel spreedsheet. thanks Demographic Information Benjamin B. Goode, born 6/15/1980, married to Karen A. Badd, born July 2, 1982. The couple has three...

Please use the Annuity method. ( 1.Determine amount to be funded, 2. Inflate funds to retirement age, 3, PV of retirement annually, 4 Annual Funding amount) show work as well ITEM SET 1: CAPITAL...

please help with just the formulas i need for each section! thank you. What other information is needed?? This is everything.. 3. On the Loon Terms worksheet calculate how quickly you could pay off...

Forpu Their Social ined that they will require retirem pers plan to retire in 8 years of 8%. They plan to 6%. Troy's parents are od Kristy assume that ITEM SET 1: CAPITAL NEEDS ANALYSIS Troy and...

FIN 410: Retirement Planning Project 1: Capital Needs Analysis Learning Objectives: 1. Understand the changing retirement system (including Social Security) and be able to acknowledge the importance...

ITEM SET 1: CAPITAL NEEDS ANALYSIS Troy and Kristy Reynolds (both currently age 56) have determined that they will require retirement income equal to $93,000 in today's dollars, based on their...

Please show your work. A B C D E F G H J K L M N o F 1 Q1: 2 An important task in performing business valuations is normalizing the historical financial statements. (a). Using the information...

Your friend, Maya, says that earnings can be manipulated by managers. She argues that one should always look at the cash flows by ignoring the non-cash transactions completely as cash flows cannot be...

Required: 1. Assume that the relevant range is within 600 and 1200 patients. Use the high-low method to estimate the behavior of the clinic's administrative costs, based on patient load within the...

the market - value based model of measuring interest rate risk is called

Initial pb: https://www.chegg.com/homework-help/questions-and-answers/download-starter-code-playcardjava-give-idea-intend-use-class-matchcardgame-may-take-20-to-q31867653 Problem 2: (Shuffle) For the...